[Federal Register Volume 62, Number 121 (Tuesday, June 24, 1997)]
[Notices]
[Pages 34042-34043]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16413]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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  Federal Register / Vol. 62, No. 121 / Tuesday, June 24, 1997 / 
Notices  

[[Page 34042]]


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DEPARTMENT OF AGRICULTURE

Agriculture Marketing Service
[CN-97-004]


Cotton Research and Promotion Program: Determination of Whether 
To Conduct a Referendum Regarding 1990 Amendments to the Cotton 
Research and Promotion Act

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice.

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SUMMARY: This notice announces the Department's determination not to 
conduct a continuance referendum regarding the 1990 amendments to the 
Cotton Research and Promotion Act. This determination is based on the 
results of a sign-up period conducted January 15 through April 14, 
1997, during which all persons paying assessments to this program were 
provided the opportunity to request a referendum.

FOR FURTHER INFORMATION CONTACT: Craig Shackelford, Chief, Research and 
Promotion Staff, Cotton Division, AMS, USDA, Stop 0224, 1400 
Independence Avenue, SW, Washington, D.C. 20250-0224. Telephone (202) 
720-2259, facsimile (202) 690-1718.

SUPPLEMENTARY INFORMATION: During the period January 15 through April 
14, 1997, the Department, pursuant to Section 8(c)(1) of the Cotton 
Research and Promotion Act provided an opportunity, a sign-up period, 
for all eligible persons to request a continuance referendum on the 
1990 Act amendments. Sign-up period results showed that a total of 
1,223 valid requests were received by the Department from eligible 
persons in various states and from importers. The following table 
depicts the number of requests for a continuance referendum.

------------------------------------------------------------------------
                                                                 Sign up
                       FSA state office                          request
------------------------------------------------------------------------
Alabama.......................................................         5
Arizona.......................................................        35
Arkansas......................................................         1
California....................................................         0
Florida.......................................................        26
Georgia.......................................................        52
Kansas........................................................         0
Kentucky......................................................         1
Louisiana.....................................................       208
Mississippi...................................................        62
Missouri......................................................         7
New Mexico....................................................        24
North Carolina................................................       145
Oklahoma......................................................        18
South Carolina................................................         1
Tennessee.....................................................        47
Texas.........................................................       296
Virginia......................................................        44
Importers.....................................................       251
                                                               ---------
    Total.....................................................     1,223
------------------------------------------------------------------------

    Section 8(c)(2) of the Cotton Research and Promotion Act (Act), 
provides that following a sign-up period, the Secretary shall conduct a 
referendum upon the request of 10 percent or more of the number of 
cotton producers and importers voting in the most recent referendum 
(1991). This would require 10 percent or 4,622 (46,220 x .10=4,622) of 
the 46,220 valid ballots cast by cotton producers and importers in the 
July 1991 referendum. It is further provided that, in counting such 
requests not more than 20 percent may be from producers from any one 
state or importers of cotton.
    The Department finds that the results of the sign-up period did not 
meet the criteria requiring a continuance referendum by the Cotton 
Research and Promotion Act. The Department bases this determination on 
the fact that the 1,223 requests received during the sign-up period, is 
less than the 4,622 required.

Background

    On November 28, 1990, Congress, as part of the Food, Agriculture, 
Trade and Conservation Act of 1990, enacted amendments to the Cotton 
Research and Promotion Act. These amendments provided for: (1) importer 
representation on the Cotton Board by an appropriate number of persons 
to be determined by the Secretary who import cotton or cotton products 
into the U.S., and are selected by the Secretary from nominations 
submitted by importer organizations certified by the Secretary; (2) 
assessments levied on imported cotton and cotton products at a rate 
determined in the same manner as for U.S. cotton; (3) increase in the 
amount the Secretary can be reimbursed for conduct of a referendum from 
$200,000 to $300,000; (4) reimbursement of government agencies which 
assist in administering the collection of assessments on imported 
cotton and cotton products; and (5) termination of the right of 
producers to demand a refund of assessments.
    In July 9, 1991, (56 FR 31289) the Agricultural Marketing Service 
(AMS) issued a proposal to amend the Cotton Research and Promotion 
Order. To determine if a majority, 50 percent or more, of producers and 
importers favored implementation of the proposed amendments to the 
Order, the Department conducted a referendum among persons who had been 
cotton producers or cotton importers during a representative period.
    Results of the July 1991 referendum showed that of the 46,220 valid 
ballots received, 27,879 or 60 percent of the persons voting, 27,638 
cotton producers and 241 importers, favored the amendments to the 
Order, and 18,341 or 40 percent, 17,957 cotton producers and 384 cotton 
importers, opposed the amendments to the Order.
    Following the July 1991 referendum, AMS implemented the amendments. 
In addition to the previously discussed amendments to the Act and 
Order, the Department is required by Section 8(c)(1) to: (1) conduct a 
review once every 5 years after the anniversary date of the referendum 
implementing the 1990 Act amendments to determine whether a referendum 
is necessary and; (2) make public the results of such a review within 
60 days after each fifth anniversary date of the 1991 implementing 
referendum. Should the review indicate that a referendum is needed, the 
Department is directed to conduct the referendum within 12 months after 
a public announcement of review results.
    Should the review indicate that a referendum is not warranted, 
Section 8(c)(2) includes provisions for producers and importers to 
request a continuance referendum through a sign-up period.
    Pursuant to the Act, on October 8, 1996, the Department announced 
its determination (61 FR 52772), based on a review report titled 
``Cotton Research

[[Page 34043]]

and Promotion Five Year Review'', not to conduct a referendum on its 
own initiative among cotton producers and importers regarding the 
continuation of the 1990 Act amendments.
    The report describes the impact of the Cotton Research and 
Promotion Program on the cotton industry and the views of those 
receiving its benefits. It states that the 1990 amendments to the 
Cotton Research and Promotion Act were successfully implemented and are 
operating as intended. The report also states that there is a general 
consensus within the cotton industry that the Cotton Research and 
Promotion Program in general, and the import assessment and the 
elimination of refunds in particular, are operating as intended. Based 
on the findings of the report, the Department found no compelling 
reason to conduct a referendum regarding the 1990 Act amendments, even 
though the report did recognize that some program participants were in 
favor of a referendum.
    If the Secretary does not provide for such a referendum on the 
Secretary's own initiative, the Act provides that the Secretary shall 
conduct such a referendum upon the request of 10 percent or more of the 
number of cotton producers and importers voting in the most recent 
referendum. This would be accomplished through a sign-up period 
conducted by the Department. Determination of sign up eligibility and 
procedures for the conduct of the sign-up period were announced prior 
to the start of the sign-up period in the Federal Register (62 FR 
1659).
    With this announcement of the results of the sign-up, the 
Department has completed all requirements set forth in section 8(c) (1) 
and (2) regarding the review of the Cotton Research and Promotion 
Program to determine if a referendum is warranted. A referendum will 
not be conducted, and no further actions are planned in connection with 
this review.

    Authority: 7 U.S.C. 2101-2118.

    Dated: June 18, 1997.
D. Michael Holbrook,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 97-16413 Filed 6-23-97; 8:45 am]
BILLING CODE 3410-02-P